supply of electronic goods and services to the UK from Hong Kong

supply of electronic goods and services to the...

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we are planning to sell goods (books and courses) and services to the UK. Both of these will be delivered electronically from our web sites which are set up in Hong Kong and owned by our Hong Kong corporation. We are trying to establish the VAT situation.

On the supply of services VAT appears to be due in the UK wehther B2B or B2C

My research has produced nothing on the supply of goods electronically

Thanks you

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By shaun king
21st Jan 2013 12:44

If something is supplied electronically then it is treated as asupply of services and as you have indicated your Hong Kong company will need to register for VAT in the EU.

If you look at http://webarchive.nationalarchives.gov.uk/20110202144320/http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_CL_000907&propertyType=document 

it will give you further information.

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By john88888
22nd Jan 2013 00:26

electronic goods and services

Thank you Shaun

no argument on the goods - and this seems clearly covered by VAT info sheet 2003/04

but services seem to be treated differently as per Table 2 2(a) - although I have yet to find  detail of exactly how these are treated

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By shaun king
22nd Jan 2013 17:26

Table2.2a seeks to differentiate between those services whereby the internet is used to transmit data which has a high degree of human intervention such as an accountant who provides advice to a client and uses the internet to transmit that advice. In this instance there is a supply of services NOT caught by the electronic definition and these supplies follow the normal place of supply rules for services

B2B - generally where the recipent is established and recipient accounts for the VAT

B2C - the supplier charges and accounts for VAT from the business establishment most closely connected with the supply

 

Trust this clarifies

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By DeeptiGarg
08th May 2013 12:53

SpireMT

Digital Flow Meters : Spiremt.com provides all types of digital flow meters, heating meters, portable and handheld flow meters, water meters etc. at affordable price.

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